Business, 08.04.2020 20:39 jadenjohnson89

Switzerland exports watches to Russia. Watches are relatively capital intensive in their production process. With trade, the price of watches rises by 10 percent in Switzerland. According to the magnification principle: Select one: a. we would expect the price of capital to rise by more than 10 percent in Switzerland. b. we would expect the price of capital to fall by more than 10 percent in Switzerland. c. we would expect the price of labor to rise by more than 10 percent in Switzerland. d. we would expect the price of capital to rise by exactly 10 percent in Switzerland.

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Switzerland exports watches to Russia. Watches are relatively capital intensive in their production...